What is the most profitable way to take advantage of a bull market?

Discussion in 'Strategy Building' started by OneHipCat, Sep 6, 2005.

  1. Hypothetically, say the S&P 500 was going to rally from now into the end of the year without a reversal of any sort, what strategy would you use to maximize your return?

    The only strategy I can think of is to use a a lot of leverage and pyramid up as the market rises. But is there an even more profitable way with options or something?
     
  2. One has to love the certainty of the bulls here. we have swung the other way finally. The last time we had these bold kind of statements were when dow was failing at 10600-10700 level. keep it up guys.
     
  3. The 200% Mutual Funds work nicely,,,, up or down market....:D
     
  4. trend trade:The 200% Mutual Funds work nicely,,,, up or down market....


    Several rydex index funds are leveraged 2 for 1.
     
  5. Pro Funds also has 200% funds (long & short) on all Indexes, and 150% long on several sectors.......
     
  6. gkishot

    gkishot

    ok, but options have a leverage of about 20 to 1.
     
  7. The question was totally hypothetical, maybe I should've used forex or commodities for my example.

    Anyway, forget mutual funds. I'm thinking more like 50:1 leverage with an FX broker and pyramiding up. Is there anything that can beat that?

    Now, please realize that I'm just trying to determine theoretically what is the fastest way to make money in a trending market. I 'm aware that such a strategy is unbelievably risky, blah blah blah
     
  8. gkishot

    gkishot

    FX broker to trade a stock market?
     
  9. Obviously not.

    I was just trying to make a point of how much leverage you can gain access to. I have no experience with futures but I've gathered from here and there that the leverage is similar.
     
  10. maxpi

    maxpi

    Your nearest options seem to move about 10 times as fast as the underlying, as you go out farther in time they move slower.
     
    #10     Sep 6, 2005